BorsodChem: Agreement in principle with Wanhua Industrial signed

Budapest, 15 October 2009 – After three days of intensive negotiations, the management and the majority shareholders of BorsodChem signed an agreement in principle with representatives of Wanhua Industrial, a China based holding, which controls Yantai Wanhua. The term sheet governs the agreed upon midterm role of Yantai Wanhua as a minority shareholder of BorsodChem as well as the agreement to the company’s debt restructuring plan, which is also strongly supported by the senior lenders and the Hungarian government.

“This is a very important step for the financial restructuring of BorsodChem and the implementation of our growth plan”, stated Wolfgang Büchele, CEO of BorsodChem after the negotiations. “This result is good for BorsodChem, its customers, suppliers and the employees in particular”, Büchele added. “But there is still a long way to go. Several questions remain unresolved for the time being and will be addressed only at a later stage. The delegates agreed on further negotiations in due course to discuss the open questions in a friendly and constructive manner.”

The negotiations, which took place in Budapest, were attended by Wolfgang Büchele, representatives of the shareholders Permira and Vienna Capital Partners and Wanhua Industrial, including Chairman Jiansheng Ding.
Last week, in a meeting with senior lenders of BorsodChem the banks expressed their strong support of the current management of BorsodChem and their expectations that the current management continues to operate BorsodChem during the implementation of the growth plan. The Permira Funds and Vienna Capital Partners should remain majority shareholders and continue to exercise operational control, the banks stated. 

Further information
Dr. Gábor Hegyi
Capital Communications
Phone +36 1 266 01 99